First Major Legislative Proposal of the Labour Market Reform Package: Greater Security for Flexible Workers

3 June 2025

On Monday, 19 May 2025, the Minister of Social Affairs and Employment submitted the first significant legislative proposal under the labour market reform package to the House of Representatives: the Proposal on Greater Security for Flexible Workers (36749). This proposal forms part of a broader effort to reform the Dutch labour market by reinforcing the legal position of employees while improving the operational flexibility available to employers.

If approved by both the House of Representatives and the Senate, the Act is scheduled to enter into force on 1 January 2027. It aims to enhance the security of flexible workers and introduces reforms across three core areas of flexible employment law: on-call contracts, fixed-term employment contracts, and temporary agency contracts.

On-Call Contracts

The use of zero-hours contracts will be discontinued. Existing minimum-maximum contracts will be replaced by bandwidth contracts, under which the permitted variation in working hours is limited to a maximum of 30%.

These contracts must include a guaranteed minimum number of hours, which must be paid irrespective of whether the hours are actually worked. The exclusion of the employer’s obligation to continue wage payment is no longer permitted. In addition, these contracts may specify available hours, during which the employee is required to be available for scheduling.

Zero-hour contracts may still be used under specific conditions for minors and students.

Succession of fixed-term employment contracts (Ketenregeling)

The statutory interruption period required to reset the chain of successive fixed-term contracts will be extended from six months to sixty months (five years). Consequently, successive fixed-term contracts within a five-year period will be considered part of the same chain.

The current possibility to deviate from the provisions of the DCC on the succession of fixed-term employment contracts, regarding the number and duration of fixed-term contracts, through collective labour agreements will be eliminated. Exceptions remain for students and recurring temporary work, such as seasonal employment.

Temporary Agency Contracts

The cumulative duration of temporary agency work contracts will be limited to a maximum of three years. The phased system applicable to agency work will also be revised.

Phase A, during which the provisions regarding the succession of fixed-term employment contracts do not apply, will be shortened from 78 to 52 weeks. In Phase B, a rules regarding the succession of fixed-term employment contracts will apply: the agency worker may enter into no more than six contracts within a two-year period (previously four years). After three years of employment, the agency worker will be entitled to a permanent contract with the temporary work agency.

In addition to the right to equal pay, temporary agency workers will also be entitled to other employment conditions that are at least equivalent to those of employees directly employed by the hiring organisation.